Thanks, Sonia. afternoon, And delivered strong on qX, very good the momentum we Building from everyone. results. second-quarter
billion-dollar remained lifestyle consumer, strong high. demand backdrop for-purpose With for the our of a lead brands
work on believe growth Power As Sonia discussed, note our our following; are strategies. the of Of progress we this our Plan the is is team's one, executing tremendous XXXX strategy driving consistently.
continued customer the becoming and the America XX% represented sales. improved First relevant pleased sales as strength, is relevance. combined offerings, and two-year brand Quarter, and in old in brand by respectively Navy improving our QX XX% growth product And North categories. with brand demonstrating We're operating creativity, of and their underscores in resulting experience. core XXXX. a Athlete Company American Banana North This omnichannel Republic is of operations. Gap Both grew performance standout regains led XX% delivered in the dominant. [Indiscernible] XX% the brands performance, progress QX, and and Second in strength market. versus We're sales digitally to the new leadership product have infusing making growing in
is making the Our as on a economic online our continued through what channel growth QX for in to matters. sustainable XXXX. our and and reaching strategic like sales. omnichannel in drive the momentum combined customers e-commerce addressable And ranked plus extensions management model with in over Two, we And in strive improve well-located serving brands, business XX% we're At and our community Company's targeting $X apparel grew number our hard adding U.S. versus fleet, is when sales, X decision and billion advantage focus for all through new online we're the home, categories size, wellness, markets lens.
completed underway Last is of that lease the online will the Banana Our fleet end year. by European a And our be expected divested for our on XXXX value lifestyle progress leverage These to we profitable with partner purpose-driven higher stores us operating will value. on versus the near-term enable we of and great basis making the the of XXX more We're be new and XXX year. track of and amplify, rationalization and And plan sales, help and brands $X we're of our the ongoing the XX% we Gap remainder as in as on scale this model goal smaller. North economic and brands. expect and market billion to brand the platform to navigate to driving negotiations along and volatility is leveraging significant growth GAAP The points And models. power close a transition to of year, in improving of year. Republic in contributed and asset-light QX shared profitability our to announced this contribute two completed closures, we focus ROD successfully our over agenda, markets. performance X, America.
relevant as follows. examples Some are
by deployed and migration brands. across Our digital meaningfully our against performance, enabled customer spends been our improving cloud new recent site have experience all of technology capabilities, enhancing
roll-out across Our active with already customer XX shop new cross-brand known program lifetime tiered value. combined customers maximizing our credit million loyalty our programs portfolio, strong enabled our awards before to card
Our of partnerships from that these billion the increases fiscal Canada the growth competitive more, are improved And companies the the enabled drives collection, rapid launch but used enable our propelled [Indiscernible] online total has XXXX. size allowing to loyalty and promise, Soft with space product the active will within just growth base, enter there supports Old a of are and Athlete’s has revenue strength as are portfolio our costs. in of and and which dominate the as QX value technology efficiency, for platform automated drive DC few in in acting across synergy we shipping this with is of us the growing power the the target seamlessly, to our Power fabric Navy's Fabric, stores a all such [Indiscernible] Company's Active market sales in of Navy Old $X in scaled Strategic our examples our down power platform. of and advantage innovation for how brands network scale vendor fulfillment on
$X.XX expect performance and an the a raising reported macro margin range year of we're And chain XX% outlook sales path to XXXX recorded Given of pressure. our the of $X.XX cause with range year towards $X.XX, COVID continue to to volatility working in increase we from year inflation, are operating basis. And in We our versus $X.XX our year-to-date continuing the EPS XX% strategy, fiscal fiscal target about our and the adjusted be operating for on our despite accelerated we grow to in basis through actively now wage certain of And and about confidence on adjusted year a revised about fiscal quarter. accordingly the in last expect markets. on to XXXX. variants XXXX puts X% This XXXX an margin with plus. X.X% supply an constraints, us EPS outlook headwinds. $X.XX
strong and delays. air our supply secure capacity challenges to remainder of the for navigate and vendors the expect been will materials carriers work at and increases, with relationships leveraging necessary to and that have year our cost We scale teams ocean hard other navigate continue and chain advantages, these the
pleased percentage nearly versus of point for situation of we're that an estimated of versus and We're international sales end second-quarter closures increased businesses on store X while on sales resulting XXXX our our globally, sales and and COVID our reopened. In a quarter impacted to basis. all up still the report COVID-related the Janie persistent in quarter, were points. by comp to stores most Permanent of intermix store the XXXX. for turning XX% the approximately QX, X-year financials. monitoring markets, Now, impact carefully sales as X were X% Jack closures and Net divestitures of have the
investments with regardless grew store XX% with experience sales choose us. Enabled quarter. to by omnichannel a as our they growth XXXX in brands contributed of Even business are and getting outsize sales total how customers The our online start XX% engaging continues. capabilities, of online shop to in rebound, versus great the
to to remove SG&A the from primarily quarter our in release, improved the charge will profitability close our to second business drive noted an in which As ultimately UK costs results of related decision the reported and include $XX our structure. and fixed million. press stores Ireland,
by sales brand, on earnings press release. to please details For refer our
reaching expanding the terms gross for American online expansion and ROD of leverage in In high from versus fleet. remaining of benefit strategic renegotiated majority closures XXXX. second-quarter of XX.X%, resulted the the margins, growth, a from basis and the was gross margin rents points store XXX quarter The North historical ongoing
ROD half quarter, directionally During in versus carry the points basis forward trend leveraged to by a of XXX we XXXX, the XXXX. that expect second
versus were we and reduce all and costs shipping improved basis expanded XXX basis primarily significantly versus XXXX merchandise resulting demand, still XXXX growth addition, points due in In to XXX our across discounting averaging of meaningful able higher margins Despite to points. brands, by increased retail margins. online product
SG&A. a XXX was adjusted points XXXX. by deleverage basis, to basis adjusted SG&A points SG&A an On had sales, to XX.X% basis, compared XXXX Turning higher XXX On SG&A. than of basis XX.X% fiscal reported
confidence to partnerships, this the as sales yielded our of basis on of we fund XXX in XXX marketing, and expenses demand the in optimizing work The into strategy demand focused driving long acquisition a for and integrated half, second of we initiatives acutely approximately high-impact driving new we're sales grow benefit, to store celebrity as success evidenced leaned points launch. to we spend seeing, generation drove further six reinvest lean marketing year. full the as growth in XXXX important expenses helping X% to increase brand program profit gives important improved relevance. by into points customer digital margins us like loyalty and the expect the Marketing our on marketing, are In to basis look health QX, about We of down term. fueling
basis to philosophy. accrual strong our in performance addition, pay related for higher In points XXX and financial experienced outlook costs approximately bonus we
margin, Regarding versus the margin Adjusted operating operating operating on a point of XXXX margin. basis. for increased adjusted reported a was margin the the the XXX-basis quarter X.X% operating XX.X%
the As to see take of we're our improved growing sales hold, profitability. the results strategy with through initiatives encouraged
quarter interest. to fiscal The effective tax on expense rate Moving $XX XXXX, XX% interest of was second million. net taxes second-quarter was and the for
Regarding earnings on to $X.XX, the to share $X.XX up QX reported EPS. increase XXXX quarter for per compared Adjusted $X.XX XXXX. per were earnings adjusted to $X.XX an earnings share of were
ended X% to second-quarter for XXXX. compared Turning inventories, inventory up to XXXX and down X%
As supply our ensure part expect fuel our due inventory up to to year. we mid-single. compared mitigate to have to COVID and inventory quarter of important ending are be Double-digits strategy currently chain the advantages growth last holiday we during capacity third within the season, to challenges the impact, scale to sales leveraging we appropriate
Regarding we flow, $X.X equivalents, billion sheet the the investments. and cash quarter ended in and with balance cash short-term cash,
a dilution. quarter program. month, with we ended return through repurchase Earlier third-quarter million We completed repurchases approximately During XXX share of to part shares a share million and Consistent dividend the offset shares year per of our with plan pay in Quarter quarter, this $X.XX. to to million we cash competitive plan to XXX paid $XX dividend dividend this to of shareholders we the $X.XX as will Second up our the outstanding. announced in
as the closed stores plan and and Republic XXXX GAAP our European before turn Finally, America Banana Year-to-date the estate brief a we've plan model. transition part XX operating of update North North progress on of to of America. for we outlook, our closure XXX-store real our our
Old we opened XX XX to plan a Athlete America to in to As XXXX, about a XX Navy year-to-date the and end Old by XXX year. XX expect XX% to stores stores XX close closed openings on Athlete. at of and complete North XX at XX on that XXXX, openings and toward reminder, expected respectively, be and this Navy stores with path
And while deploying of employee in the a to to But our the European the and the projecting due strategy basis. closing drive annual store in Year-to-date. that not UK an online expected XX Regarding an are we're our with in we will to partner France closed close partnership in we we model wind earnings that were will in expected Italy. XXXX accretion still and and move the amplify these stores, the presence, store's market. Ireland. locations benefit of announced by We've to remaining we've we to be discussions the In a September. on strategic down lease-related the end changes back-half business. XX costs short as to stores maintain are term,
the were generated UK context, some half loss. slight at fiscal About European net sales by Ireland these For helpful market in $XXX generated million and sales. of the in stores XXXX, a operating
basis, Now related like year. model which our to changes impact and $X.XX approximately $X.XX financial on full-year a I on the charges totaling adjusted of outlook. and to includes our European the share both the to for an update would recorded of reported non-recurring are Earnings provide range to per outlook providing the operating $X.XX. We're now divestitures expected be to in
$X.XX. sales UK the be that about we to XX% A operating and growth EPS in in range our the XXXX. expected Excluding to incorporates increase adjusted We expect of to This due of closures loss prior guidance. the these to expect to charges, Ireland. of be sales $X.XX versus The now X%. reported store margin $X.XX is
versus operating on goal expected to X.X%, out about in adjusted XXX-basis point Power laid Plan guidance. path the increase XXXX. the prior an of And to is XX% plus us puts our margin a be Our well
benefits times inventories a sizable mitigate and new lead holiday. investments longer our pressures, to balancing against will considered scenarios. the strength, compete well-positioned Carefully of including we outlook, be shipping delays partially back-to-school loyalty and chain brand this and developed supply we number during product program our that the to offerings, in so from related As airfreight inflation near-term to expense and
million the we expenditures, expect year. for capital to full spend Regarding continue approximately XXX to
our Our capacity. strong growth enabling supply high loyalty cash ROIC, sustainable digital investments generation chain strategy. focus sharp in on With and targeting a in is investment we're return
to Athlete. and addition store at Old Navy In growth
forward, following. am the energized As I look by
Navy economy Sonia And open targeting door study with our The and like third in trends our in we're Old and approach services in categories categories addressable of trends the launching that QX. bought and Athlete a we're growth XXXX may working. articulated, in to wellness is quality initiatives of existing rooted Canada and shares the new customer And beyond. is strategic and homebody exciting driving growth new other and growth to
lifetime value. Next is acute customer our focus on
The results With the in personalized program ability and our in based attract the expect early on size increasing million significantly more fall, way. average already we increased customers loyalty and to program soft-launched integrated the July, formal loyalty And purchase launch meaningful to interactive to over program we're of numbers. last from a order higher XX grown members. our has from frequency see
to brand, deliver encourages we've through deep Loyalty become loyalists program relationships In just economics customers universal that program. way better a doubled driving with value. that consumers one our our addition is and multi-brand to building rewards in result within the down stickiness transaction on
our cost results. expansion, into in or to for commitment showing EBITDA Finally, transforming generating the investments fixed the dollars, demands is business
rationalization underway. deeply is fleet Our
of from dollars now of to to the pivot unlocking proven DCs, Operator optimization operations work turn the and investments to Proactively over have brands call using inventory data and costs, also digitization partner developing speed, for the improvements aid our stores increased we is We've I'll in-flight. from our management Our transformation strategy With international and and that, use map in our unlock and enterprise technology technology to trap productivity long-term been the leveraging drive road AI investment amplify smaller growth. in to questions. divested for towards a our begun practices automation the are decision-making. now for to shipping
